Two affiliated companies, Greyling Investments of Grand Cayman and U.S.-based Greyling Resources, have acquired control of Toronto-based Cassiar Magnesium (CIR-T).
The Greyling Group acquired its shares from Australia’s Deepgreen Minerals for just under US$4 million and now owns 17.5 million, or 49.62%, of the issued common shares of Cassiar.
Greyling is part of a large investment trust headquartered in Dallas, Texas. It concentrates on the oil and gas resource sector.
It says it will replace Cassiar’s board of directors and senior management with its own nominees at the next annual and special meeting, which is slated for July.
Departing Cassiar’s board are Clifford Frame, chairman and CEO, and Ken Bates, president. Both men have tendered their resignations. Michael Burns will act as chairman until the annual and special meeting. Remaining on the board are Ken Berkeley, Carl Freitag and James Hunt.
The board is considering its options. It says the acquisition has impacted on Cassiar’s shareholders’ rights plan.
Cassiar produces chrysotile fibre products at its mill in Cassiar, B.C. Production there began in 1953. In 1982, the plant was fully modernized and expanded to a capacity of 100,000 tonnes of fibre annually. Operations ceased in 1992 after the open pit was exhausted.
In 1993, Cassiar acquired the property and refurbished it for the commercial production of 30,000 tonnes per year. The plant reached full production in the last quarter of 2000.
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